Putting a very thin silver lining on the dark cloud of petroleum dependency, Google’s Vint Cerf (who is commonly referred to as the father of the Internet), made a statement at the 2008 OECD Ministerial Meeting in Korea about how high oil prices could be seen as beneficial to the Internet.
“Although I’m not happy with increased oil prices, the Internet (industry) may actually benefit from that as people turn to it as an aid to improve their efficiency,” said Vinton Cerf, vice president and Chief Internet Evangelist for Google, at a press conference.
The rise in oil prices is slowing some global economic growth and making it very difficult for those dependent on gas and oil to live, however Google feels that the need for businesses to save money and cut corners may fuel innovation.
“We may turn increasingly to video conferencing or other kinds of electronic media in order to avoid having to travel,” Cerf said.
Cerf also noted that there may be more use of “computational capabilities” for calculating car and aircraft routes to minimize petroleum usage.
High oil prices are also going to have a positive effect on Google outside of their search business, as the company is investing heavily in alternative and practical renewable energy development like solar generators and other utility oriented investments.
Comments
4 responses so far ↓
Yannis on Jun 19, 2008 at 10:09 pm
I agree with his statement. There’s already many people selling information or products to help with gasoline efficiency.
Raj Krishnaswamy on Jun 20, 2008 at 3:02 am
I agree with the author. There is always an upside to every problem at hand. Similar phenomenon led to the development of home shopping channels on television, where one could shop without adding on the expenses and time of driving your car to shopping centers and fighting crowds. I am sure e-commerce would benefit quite a bit. Additionally, once customers find their on line shopping experience pleasurable, they may simply stick with it and change their buying habits permanently even if gas prices go down in the future! In other words, the move to on-line shopping might be more permanent.
Michael Temple on Jun 20, 2008 at 7:28 am
This will probably be a boon for all types of Internet business. If you are shopping for a consultant, accountant, financial planner, or other professional you will use either referrals or the Internet, possibly both. First, you will get the referral then you will check them out on the net.
More companies like gotomeeting.com and webex will sell more accounts. I already know some small local businesses that have moved the demos they used to do in person to online via gotomeeting. The reason is the time and more importantly the expense of driving. As fuel prices climb even higher, which most analyst are almost certain of this type of use of the Internet will become even more dominant.
WearIt.com on Jun 21, 2008 at 5:50 pm
Hmm. Interesting take on how high energy prices may actually be beneficial to internet usage. Another angle is to consider the impact higher fuel costs have on online shopping. With gas prices squeezing consumer wallets, an iCongo survey from April ‘08 showed many consumers are turning to online stores to save the extra trip to the mall. Also, many online merchants offer free shipping or some sort of discounted shipping. If you’re shopping for clothing and apparel, here’s a helpful list of stores offering free shipping http://www.wearit.com/coupons/freeship that could help you save both at the pump and while shopping online.
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